The Office of the U.S. Trade Representative announced April 18 that South Korea has agreed to fully reopen its market to all U.S. exports of beef and beef products. USTR Susan Schwab said that with this longstanding point of contention resolved, the way should now be open for congressional approval of the U.S.-Korea Free Trade Agreement later this year. Schwab also called on China, Japan, Taiwan and others that are “still maintaining unscientific, unreasonable restrictions on U.S. beef and beef products” to follow South Korea’s lead.
A USTR press release states that the new bilateral beef trade protocol will take effect in mid-May. The protocol sets forth a two-stage process that will ultimately allow all U.S. beef and beef products from cattle of all ages to be exported to Korea as long as appropriate specified risk materials are removed. According to the U.S. Meat Export Federation, the first stage provides for Korean imports of all U.S. beef from cattle under 30 months of age. The second stage, which will open the Korean market to U.S. beef from cattle of all ages, will be triggered by an announcement concerning enhancements to the U.S. livestock feed ban.
Korea initially closed its market to U.S. beef in December 2003 following the discovery of a case of mad cow disease in the U.S. The Korean market was partially reopened in January 2006, the USTR notes, but this reopening was subject to several interruptions and the market has been effectively closed since October 2007.
Schwab asserted that the beef issue was the “major obstacle” to congressional consideration of the Korea FTA and that now that it has been removed the Bush administration will “work in earnest with Congress and the U.S. agriculture, manufacturing, and services sectors” to pass this agreement. However, some lawmakers have said they want Korea to address restrictions on U.S. automobiles as well before the FTA can go forward. According to an Inside US Trade article, Sen. Debbie Stabenow, D-Mich., said at a hearing last week that she would lead the fight against the agreement over Korea’s barriers to automobiles, home appliances and agricultural goods.
World Trade/Interactive
